Social media behemoth Facebook took quite the nosedive in terms of its shares on Thursday. The company lost more than $120 billion in market value, making it the largest ever loss of value in one day for a U.S. traded company.
The company warned that the numbers will not get any better between now and the end of the year. In fact, they are projecting that revenue growth would decline in both the 3rd and 4th quarters.
Investors have been completely blindsided by the massive tumble. They questioned how things have changed "so dramatically" in such a short time.
The tumble is just the icing on the cake of a very hard year for Facebook. An analyst for Pivotal Research Group stated that the "core Facebook platform is declining."
With the scandal surrounding Cambridge Analytica, and now the share tumble, is Facebook in serious trouble? Is this recent share tumble the final nail in the coffin of the social media empire?
My Two Cents
Trends come and go, but never has a social media empire been hit with such controversy, such as the one Facebook has been dealing with this year. Facebook had gradually seen a decrease in users in the last couple of years, as the younger generation began to favor other platforms, such as Snapchat. While Facebook was able to survive that decline in users, I don't think it will survive another scandal and share tumble.
I just want to point out that I like Facebook. It has helped me connect with family and friends of the family that I thought I lost touch with forever. It has also helped my blogging and writing business. I hope Facebook is able to rebound from these tough times.
Readers: Do you think Facebook's days are numbered? Let me know in the comments below.
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